Former Member of Parliament for Dormaa East, Paul Apraku Twum Barimah, has called on the Public Utilities Regulatory Commission (PURC) and former President John Dramani Mahama to take immediate steps to reduce electricity tariffs in line with the recent appreciation of the Ghanaian cedi.
According to Twum Barimah, Ghanaians must begin to enjoy the benefits of the cedi’s stabilisation and strength against the U.S. dollar, stressing that it is only fair for utility tariffs, especially electricity, to be adjusted downwards to reflect the current economic trend.
“As the cedi continues its upward trend, there is growing pressure on the PURC to consider these gains in future tariff reviews. Stakeholders advocate for a transparent and responsive pricing mechanism that aligns with economic indicators, ensuring that consumers benefit from favourable market conditions,” he stated.
As of May 21, 2025, the cedi has appreciated significantly, trading at GHS12.22 to the U.S. dollar. This marks an 8.44% year-to-date gain from GHS16.53 in November 2024. The cedi’s performance is largely attributed to the Bank of Ghana’s $490 million forex market interventions, increased gold reserves, and a rise in gross international reserves, from $6.2 billion in March 2024 to $9.4 billion in March 2025.
Despite this positive currency trajectory, the PURC announced a 14.75% increase in electricity tariffs effective May 3, 2025. The adjustment was based on a weighted average exchange rate of GHS15.6974 per dollar, well above the current market rate.
The Commission cited exchange rate volatility, inflation, fuel costs, and the need to recover 50% of an outstanding revenue shortfall of GHS976 million from 2024 as reasons for the increase.
With fuel imports priced in U.S. dollars, stakeholders argue that the stronger cedi should lower the cost of fuel and, by extension, electricity production. They insist that just as depreciation triggers tariff hikes, appreciation should equally lead to reductions.
Calls are mounting for the PURC to reassess its pricing formula and adopt a more responsive approach that reflects real-time economic developments.
As the debate intensifies, pressure is growing on both the regulator and policymakers to ensure that the benefits of the cedi’s recovery are felt by ordinary Ghanaians.
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